Biometric Technology in Digital Banking
Biometric Technology in Digital Banking
Identity verification and authentication methods have evolved greatly throughout human history. However, the main types of authentication have largely remained the same. There are 3 types of authentication methods according to the World Economic Forum’s whitepaper on passwordless authentication:
Type 1: Something you know; This type of authentication is based on the user’s knowledge, such as a memorized password or PIN code.
Type 2: Something you have; This refers to something a user owns, such as a credit card, mobile phone, or hardware token
Type 3: Something we are; This authentication method is concerned with something that is inherent to the user, such as their fingerprints, face, or voice
Traditionally, in the banking industry, type 1 and type 2 are the most ubiquitous. When logging in to check your account balance, you often need to enter a PIN code, an example of a type 1 authentication method. You may also need to insert your hardware token to verify your identity, which illustrates the second type of authentication. However, these methods can be unnecessarily difficult. Users must memorize lengthy passwords and even change them multiple times a year to ensure security. If authentication requires a physical, external authenticator, then users must always carry the security key on them.
Type 3 authentication, also known as authentication using biometric technologies, seems to be the speediest of the three as it makes use of inherent features of the human body for verification. By easily swiping a finger or scanning your face on your mobile device, authentication will be complete. Thus, the risk of forgetting or mistyping a password and getting logged out of an account is dramatically reduced. These characteristics are unique to each individual and with the advanced technologies built into smartphones, can be easily integrated with digital banking applications.
The two most widely used biometric authentication methods are the fingerprint scanning and facial recognition technologies.
Most smart phones have built in fingerprint scanners on the back or front of the phone. Users can verify their identity and formalize a transaction just by swiping their finger on the scanner. You can also register numerous fingerprints for greater convenience. Our digital solution also upholds the highest standards for all mobile phone models. Hence, we have a blocklist for phone models whose specifications may not be up to par with our security requirements. These models may be limited to exclusively using fingerprint scanning technologies instead of facial recognition for optimal security.
Facial recognition is an increasingly common feature of mobile phones. The facial recognition technology scans your face and analyzes the positioning of your facial features to determine your identity. Toppan iDGate’s facial recognition technology also protects against fraud through its liveness detection capabilities. The solution can distinguish between still images and silicone masks to counter fraudulent attempts.
Advantages of Biometric Technologies
A recent article published by BLM technologies outlined the numerous benefits of biometric technology in the financial industry. Biometric verification is exceedingly convenient as individuals can swiftly be identified without having to dig through their bags for external authenticators or try to recall their complex passwords.
While passwords are traditional, they are not necessarily safe. The safety of passwords can be compromised through data breaches, which has terrible consequences for both the service provider and customer. Biometric information, on the other hand, is saved on an individual’s device rather than the public server with public key cryptography. Not only is customer information better protected using biometrics, but operational costs can also be reduced as human operators to manage password or authentication related matters are no longer necessary.
Biometrics’ Place in Digital Banking for the eKYC process
Using biometric technology, users can open a bank account or even verify payments without having to physically go to the bank, a convenience that we owe to the digital age. Thus, as the banking industry increasingly moves to digital platforms and customers seek less tedious and more user-friendly applications, adopting biometrics as an authentication technology is a secure and efficient option.
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